ServiceNow Raises 2026 Subscription Revenue Forecast to $15.79 Billion as Contracts Grow
Key Facts
ServiceNow raised its fiscal 2026 subscription revenue forecast to a range of $15.780 billion to $15.790 billion, according to results announced on October 28. The company said the new range represents annual growth of 22.5% on a GAAP basis and 21% in constant currency. The update followed third-quarter subscription revenue of $3.988 billion, up 21% year over year and 20.5% in constant currency. These figures put subscription revenue at the center of the new guidance, as the base of contracts set to convert into revenue in coming periods expands. The company announced its quarterly results on October 28, 2026.
Contract indicators showed growth in both near-term and total obligations at quarter-end. Current remaining performance obligations, which the company expects to recognize as revenue over the next twelve months, stood at $13.65 billion on September 30, up 20.5% year over year, or 21% in constant currency. Total remaining performance obligations reached $29.7 billion, up 22% year over year and 22.5% in constant currency. These measures reflect the volume of contracted revenue expected to be recorded later, while recognition of current obligations remains spread over the twelve months following quarter-end.
Large deals expanded during the period: ServiceNow signed 19 deals in which the net new annual contract value for each exceeded $5 million, an annual increase of more than 135%. It ended the quarter with 680 customers whose annual contract value exceeded $5 million, up about 23% from the same period a year earlier. These figures indicate a broader base of high-value business among its customers. The company also said customer consumption of agentic AI in production environments had increased more than 13 times year over year since the start of the year. It also raised its fiscal 2026 free cash flow margin target by 100 basis points to 36%.
In the AI context, ServiceNow announced an expanded partnership with OpenAI to help companies move from reasoning to governed execution, adding a new ServiceNow integration within ChatGPT. The company said in its announcement: "ServiceNow today announced an expanded partnership with OpenAI." The announcement comes amid broader expansion of enterprise integrations, while the company did not provide a measure of the partnership's revenue impact in the available facts. Subscription and contract results remain the numerical indicators the company provided alongside its forecast update.
For the fourth quarter of 2026, the company expects subscription revenue of between $4.245 billion and $4.255 billion. That would represent annual growth of 22.5% to 23% on a GAAP basis, or 21.5% in constant currency. The guidance follows 21% subscription growth in the third quarter and sets out the revenue trajectory the company is targeting for the next period. In the stock market, ServiceNow, listed under the ticker NOW, closed at $101.97 on November 6, 2026.